Commenting on HMRC’s latest Annual Report covering the year to 31 March 2025, Paul Marcroft, tax partner at RSM UK, said: “At a headline glance, HMRC’s compliance performance in 2024/25 and in particular the yield generated through interventions has improved markedly, with 15% year-on-year growth.

“However, when you peel back the numbers, it is evident that much of that growth is through “upstream compliance”, which is essentially the promotion of compliance and prevention of non-compliance. Whereas the monies recovered from investigations remains largely static at £28.5bn.

“Clearly upstream compliance is a core part of HMRC’s compliance activity and while HMRC is continuing to invest in its compliance workforce, it isn’t translating to an increase in traditional methods of investigation. A total of 316,000 compliance checks were completed in the year, marginally lower than 320,000 the previous year, while the number criminal investigations into wealthy evaders is down 30%, from 399 investigations to 275.

“HMRC and its approach to compliance activity is continuing to evolve, and this report suggests it is generating results for the Exchequer.”

Olivia Wiggett, associate director at RSM UK, added: “It was first announced in the Autumn Budget 2024 that the government would commit to an additional 5,500 additional compliance officers by 2029-30. However, the accounts published today suggest that HMRC plans to increase the compliance workforce primarily by expanding its entry-level trainee programme, with new staff expected to be fully productive after four years, following an initial nine months of training.

“Evidence shows that HMRC increased its compliance staff by 750 in the year to 31 March 2025. If HMRC is going to reduce the tax gap and the intention is to expand the workforce at entry-level, recruitment of the additional compliance officers will need to be imminent.”

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